The NFT Market Isn't Dead—Wealthy Collectors Are Still Driving Growth, Says Animoca Brands

The persistent question echoing through the crypto industry is straightforward: are NFTs still a thing? According to Yat Siu, co-founder of Animoca Brands, a prominent Web3 development and venture capital firm specializing in real-world asset tokenization, the answer is unequivocally yes—though the market landscape looks dramatically different from its 2021/22 golden age.

While monthly NFT sales have contracted from their peak of over $1 billion to approximately $300 million in recent periods, this figure alone doesn’t tell the complete story. The real narrative revolves around who is driving these transactions: a concentrated group of high-net-worth individuals and digital art enthusiasts who view non-fungible tokens through a fundamentally different lens than the retail speculators of the boom era.

Digital Collectibles as Status Symbols: The Wealthy Collector Effect

The market for NFTs haven’t collapsed—it has simply matured and consolidated around serious collectors. “Wealthy collectors continue to support this space in meaningful ways,” Siu explained during remarks at the CfC St. Moritz crypto conference. “Many investors develop deep connections to specific digital art categories, much like how family offices might curate Picasso paintings or classic sports cars.”

This comparison isn’t merely rhetorical. The psychology driving NFT adoption among high-net-worth individuals mirrors that of traditional luxury goods markets. Collectors of Picasso artworks naturally gravitate toward other Picasso enthusiasts; the same principle applies to Bored Ape owners, Otherdeed land holders from the Yuga Labs-created Otherside metaverse, and other exclusive digital assets.

“It creates a club—a community of like-minded people,” Siu noted. “You see the same phenomenon with Ferrari collectors, Rolex watch enthusiasts, or Lamborghini aficionados. NFTs are simply the digital iteration of this well-established collector mentality.”

Long-Term Holdings Over Short-Term Flips: A Portfolio Perspective

Siu’s own investment philosophy illuminates how the most committed participants now approach NFTs. While his personal digital asset portfolio has declined substantially—“down something like 80 percent,” as he puts it—these losses haven’t prompted panic or exit strategies. The distinction matters: these are positions he never intended to liquidate quickly.

“These are long-term assets that carry meaning,” he explained. “The participants still engaged with NFTs aren’t chasing quick profits. They’re building positions in digital collectibles they genuinely value.”

This represents a fundamental shift from the speculative fervor of 2017 and 2021/22, when projects like Cryptokitties spawned waves of retail interest followed by inevitable downturns. Each cycle has brought more institutional sophistication and clearer use cases. Today, billionaire investors like Adam Weitsman publicly acquire premium NFT collections—from Otherdeed parcels to entire Bored Ape portfolios—viewing them as legitimate alternative assets worthy of serious capital allocation.

Market Context: Why $300 Million Monthly Still Represents Significance

Skeptics point to the dramatic contraction in sales volume as evidence of market failure. But this perspective misses crucial context. “Consider that five years ago this was essentially a zero-dollar market,” Siu observed. “The current figures are entirely relative to your frame of reference. The blockchain records every transaction transparently, so all data remains publicly verifiable.”

The evolution from zero to $300 million monthly demonstrates the resilience of a fundamental technology and use case. NFTs have proven their staying power beyond the hype cycles typical of emerging technologies. The market that remains is smaller but arguably more meaningful—composed of participants with genuine conviction rather than those seeking quick speculation plays.

Regional Headwinds: How Politics and Security Reshape Market Geography

The sector faces legitimate external pressures that extend beyond market cycles. France’s dramatic policy reversal provides a stark example. The country once positioned itself as crypto-friendly, yet has systematically retreated from that stance. The cancellation of NFT Paris—flagship annual conference for the sector—reflects broader geopolitical challenges rather than the death of the market itself.

“The cancellation says more about France’s policy shift than about NFTs,” Siu emphasized. “France has fundamentally reversed course on crypto. Projects like Sorare faced intense regulatory scrutiny from gambling authorities, and this anti-crypto sentiment extends across much of Europe more broadly.”

Beyond regulatory friction, security concerns have become material. France experienced multiple kidnapping and extortion attempts targeting crypto executives and investors during recent years. Such threats deterred attendance and sponsorship at major events, creating practical barriers independent of market fundamentals. “NFT Paris wasn’t canceled solely due to sponsor shortages,” Siu noted. “Many participants, including myself, began avoiding the region specifically for security reasons.”

The Verdict: A Market in Transition, Not Extinction

The data presents a nuanced picture that resists simplistic narratives. Are NFTs still a thing? Absolutely—but they’ve transformed from a speculative mania into a niche market dominated by committed collectors and serious investors. The technology underlying them remains validated by transparent blockchain records. The community persists and, notably, continues to deploy capital.

The $300 million monthly market, though diminished from peaks, represents a durable foundation of genuine demand. Whether this represents a floor before recovery or a new equilibrium remains subject to debate. What’s clear is that reports of NFTs’ demise have been significantly exaggerated—they’ve simply become something more selective, more serious, and less headline-grabbing than during the frenzied bull runs that captured mainstream attention.